Barratt points to early signs of recovery

Barratt Developments claimed it can see early signs of market stability, as it reported that house prices are starting to level off.

But the housebuilder reported a fall in total sales of 29% to 13,202 in the year to 30 June.

It also warned that a sustained improvement in trading could only be achieved if the government ensured a greater availability of mortgage finance.

Barratt is also expected to slice its net debt down to £1.28bn pounds as at 30 June, compared to £1.42bn at the end of 2008.

It added that it will not write down the value of its land holdings further and is operating within its financial covenants.

Meanwhile Persimmon said volumes and forward orders were better than in the previous year and that it had seen prices stabilise in some areas.